Connect with us

News

Russia owes Western banks $120 billion. They won’t get it back

Published

on

Russia owes Western banks 0 billion. They won’t get it back

The Wall Avenue big stated Thursday that it’s “winding down its enterprise in Russia in compliance with regulatory and licensing necessities,” a Goldman Sachs spokesperson stated.

The departure follows a scramble by Western banks to tally their publicity to Russia after President Vladimir Putin ordered the invasion of Ukraine, triggering punishing sanctions that cowl many of the nation’s monetary system, together with its central financial institution and high business lenders — VTB and Sberbank.

It additionally comes after a stampede of Western companies out of nearly each different sector of Russia’s economic system, and as scores businesses warn {that a} Russian debt default is imminent.

Worldwide banks are owed greater than $121 billion by Russian entities, in accordance with the Financial institution for Worldwide Settlements, which suspended Russia’s membership on Thursday. European banks have over $84 billion whole claims, with France, Italy and Austria probably the most uncovered, and US banks owed $14.7 billion.

Goldman Sachs (GS) earlier disclosed that it had credit score publicity to Russia of $650 million in December 2021.

Different banks with extra to lose may quickly observe Goldman Sachs out of Russia. Kremlin spokesperson Dmitry Peskov stated Thursday that the financial scenario in Russia is “completely unprecedented” and blamed the West for an “financial warfare.” Moscow has pledged to retaliate for the sanctions, and a few banks have recommended that their property could possibly be seized or nationalized by the Kremlin.

Advertisement

Fitch Scores warned beforehand that “massive western European banks’ asset high quality shall be pressured by the fallout from Russia’s invasion of Ukraine,” and that their operations additionally face elevated threat as they race to adjust to worldwide sanctions.

French financial institution Societe Generale (SCGLF) stated final week it’s “rigorously complying with all relevant legal guidelines and rules and is diligently implementing the measures essential to strictly implement worldwide sanctions as quickly as they’re made public.”

The financial institution stated it had nearly $21 billion in publicity to Russia on the finish of final 12 months.

Societe Generale “has greater than sufficient buffer to soak up the implications of a possible excessive state of affairs, through which the group can be stripped of property rights to its banking property in Russia,” it stated.

France’s BNP Paribas (BNPQF) stated on Wednesday that its publicity to each Russia and Ukraine totals €3 billion ($3.3 billion).
Italy’s UniCredit (UNCFF), which has been working in Russia since 1989, stated final week that its Russian arm was “very liquid and self-funded,” and that the franchise accounts for simply 3% of the financial institution’s income. On Tuesday, it stated that its publicity to Russia totals roughly €7.4 billion ($8.1 billion).
Credit score Suisse (CS) stated Thursday that it has publicity to Russia of 1 billion Swiss francs ($1.1 billion).
Deutsche Financial institution (DB) stated in a press release on Wednesday that it has “restricted” publicity to Russia, with gross mortgage publicity of €1.4 billion ($1.5 billion). The German lender stated it has considerably lowered its publicity to Russia since 2014, with additional motion taken over the previous two weeks.
US banks may really feel ache, too. Citigroup (C) disclosed final week that it had roughly $10 billion in whole publicity to Russia.

Mark Mason, the financial institution’s chief monetary officer, instructed buyers that the financial institution has been performing exams to guage the implications “below totally different stress sort of eventualities.” He stated the financial institution may lose roughly half its publicity in a “extreme” state of affairs.

Citi stated Wednesday that it could follow its plan of exiting its client banking enterprise — however it may be very onerous to discover a purchaser given the political and financial local weather.

Advertisement

“As we work towards that exit, we’re working that enterprise on a extra restricted foundation given present circumstances and obligations,” it stated in a press release. “With the Russian economic system within the technique of being disconnected from the worldwide monetary system as a consequence of the invasion, we proceed to evaluate our operations within the nation,” it added.

The European Central Financial institution addressed the danger to the banking sector on Thursday, saying that Europe’s monetary system has sufficient liquidity and there have been restricted indicators of stress.

“Russia is vital when it comes to vitality markets, when it comes to commodity costs, however when it comes to the publicity of the monetary sector, of the European monetary sector, Russia isn’t very related.” stated Luis de Guindos, vp of the central financial institution.

“The strains and the tensions that now we have seen aren’t comparable in any respect to what occurred in the beginning of the pandemic,” he added.

Advertisement
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

News

Two Friends’ Rush to Save a Pacific Palisades Family Home From the Fire

Published

on

Two Friends’ Rush to Save a Pacific Palisades Family Home From the Fire

It seemed as if the sky was raining fire on Orly Israel’s home. With embers whipping through the air, trees blazing and alarms blaring, Mr. Israel raced through the yard, hosing down bushes in a desperate attempt to save the house.

Mr. Israel, 30, had returned to the house in the Alphabet Streets neighborhood of Pacific Palisades on Tuesday evening with a friend after evacuating that morning with his brother and parents. “You could see it from the bedroom window,” he said of their view from the house on Tuesday morning. “You could see the flames coming down the hill.”

Ordered to evacuate, his family rushed to pack the cars with their most precious possessions — books, memories, a crate of notebooks and journals for Mr. Israel. “The embers were just flying through the sky,” said Mr. Israel, who said he moved into the house on his 10th birthday.

After leaving, Mr. Israel and a friend watched from a distant vantage point as the fire approached his family’s neighborhood. They decided to go back to try to protect the house, driving through “thick and black” smoke that limited their visibility to several feet.

Wearing swimming pool goggles and N-95 masks, they sprayed down spot fires and moved flammable furniture inside. But the intense heat and swirling embers pushed them back.

Advertisement

“It wasn’t even safe being there at all,” said Mr. Israel.

“His whole backyard was basically on fire,” said Mr. Israel’s friend, Tanner Charles Schaaf, a content creator who chases storms. But he had never seen anything like this before, he said.

“I just stood there and was like, it’s over,” Mr. Schaaf said. “We can’t fight it.” He recorded a video and prayed as the two men gave up their efforts and ran out the front door into an apocalyptic-looking night.

As they fled the house, Mr. Israel saw a large tree with flames licking its trunk in the front yard. “When that tree falls, it’s going to destroy our house,” he said. In videos sent by other friends in the neighborhood, he said, it looked like every home on the street was on fire.

“I’m thinking about my family. I’m thinking that any future plans I had that are totally out the window,” he said, adding that he had felt unprepared for the ferocity of the fire. Hours later, he said, his eyes were still stinging from the embers, and he didn’t know what his family would do next.

Advertisement

“It’s just, wait for the bad news that the house is completely gone, and then wait until they let us come pick through the rubble,” he said. “And then, I don’t know. I have no idea. Do I move to another state where they don’t have fires?”

“What happens to the city?” he added. “Neighborhoods are going to be completely gone.”

Continue Reading

News

How a handful of X accounts took Elon Musk ‘down the rabbit hole’ on UK politics

Published

on

How a handful of X accounts took Elon Musk ‘down the rabbit hole’ on UK politics

Elon Musk’s recent obsession with UK politics is being fuelled by a series of popular accounts on his social media platform X, which the billionaire appears to be turning to for information on the grooming gangs scandal and Sir Keir Starmer’s track record as a prosecutor.

An analysis of the entrepreneur’s feed by the Financial Times found that Musk — whose attacks on the British prime minister and senior politicians have become more scathing over the past week — has amplified or responded to a handful of X accounts that have posted extensively about the handling of historic sex crimes in the country. 

They include Viségrad 24 — an account with more than 1.2mn followers run by British-born Stefan Tompson — social media personality Mario Nawfal, and Malaysian influencer Ian Miles Cheong, alongside several less popular right-leaning accounts purportedly based in the UK.

Elon Musk has amplified or responded to a handful of X accounts that have posted extensively about the handling of historic sex crimes in the UK. These accounts include Stefan Tompson’s Viségrad 24 . . .  © Stefan Tompson
Mario Nawfal
.. and Mario Nawfal, who has been reposted almost 40 times by Musk in the past week © Mario Nawfal

Posts by the accounts that Musk has engaged with blamed the “British political elite” for covering up the scandal, and referred to “horrific failures” by prosecutors, alleging they “turned a blind eye to the raping of children”.

The accounts cited snippets from reports by British newspapers, and summarised findings from previous inquiries into the matter, mostly without linking to the source material or providing further context.

They also highlighted isolated passages from a book called Easy Meat: Multiculturalism, Islam And Child Sex Slavery, without naming the publication. One post linked to testimony by Telford survivor Samantha Smith saying she was asked by the British police if she consented to sexual activity, even though she was a five-year-old when first abused.

Advertisement

The posts seem to have encouraged Musk — who has more than 211mn followers on X and has used his online pulpit to support conservative cultural stances — to step up his attacks on Starmer and UK safeguarding minister Jess Phillips over the past week, alleging they failed to hold leaders of sexual grooming gangs in England to account because the perpetrators were of Pakistani heritage.

Tweets that Elon Musk interacted with
Tweets that Elon Musk interacted with © FT Montage/X

Musk’s posts have rocketed the grooming scandal to the top of the news agenda in the UK and led to renewed calls for action, with Conservative MPs attempting to force a vote on whether to hold a new inquiry. Professor Alexis Jay, chair of the original inquiry, has been drawn in, saying it would be better to implement the measures already recommended.

Musk, the world’s richest man, did not immediately respond to a request for comment.

On Saturday, Nawfal posted that Phillips “nixed a broader investigation into Oldham’s rape gangs”, to which Musk responded calling her a “wicked witch”. He also replied to an earlier post by the influencer — who frequently jumps on significant news developments and with whom Musk has long engaged — that claimed “cultural sensitivities” were prioritised over pursuing justice, calling the alleged cover-up “unconscionable”.

In the past week, Musk has reposted Nawfal almost 40 times. The 53-year-old billionaire has posted or reposted 616 times on X during the same period, at least 225 of which were about UK politics, according to FT analysis as of Wednesday morning. Including replies, he has posted more than 1180 times in seven days.

Some content could not load. Check your internet connection or browser settings.

Advertisement

Musk, who spent more than $250mn supporting Donald Trump’s campaign, has been an almost constant presence at the president-elect’s Mar-a-Lago home over the past two months, from where he has joined calls with world leaders and criticised the governments of Germany and Canada.

He has claimed that Starmer, a former director of public prosecutions in England and Wales, was “deeply complicit in the mass rapes in exchange for votes”. 

He also called for the King to dissolve parliament and call new elections.

One person who interacted with Musk this week said he had not been relying on conversations with a UK source for his information, but preferred to do his own research online. Others formerly close to the billionaire said that they believed his outrage was largely driven by posts from social media accounts that Musk does not directly follow, but that appear on his algorithmically curated “for you” feed on X.

Questions about which individuals or organisations are colouring Musk’s take on the UK government have also preoccupied some British officials. 

Several believe that a small cast of conservative-leaning British commentators and analysts based in the US are shaping views about the UK among the wider milieu of Trump’s allies.

Advertisement

“There is a pretty right-wing libertarian UK émigré network in the US who are feeding a lot of this,” said one British government official, adding that they were free speech advocates linked to right-wing US think tanks that are projecting an image of the UK as “uber woke”.

British author and conservative political commentator Douglas Murray
A small cast of conservative-leaning British commentators based in the US, such as Douglas Murray, are shaping the views of Trump’s allies © Geoffroy Van der Hasselt/AFP/Getty Images

The officials said they include Douglas Murray, a neoconservative author who has written books on western decline and “Islamophilia,” who Musk has referred to in tweets on the grooming scandal, and Nile Gardiner, director of the Margaret Thatcher Center for Freedom at the DC-based Heritage Foundation.

A second UK official said that the growth of Islam in the UK was another key theme pushed by influential US-based British commentators, highlighting that UK media stories last month about “Muhammad” becoming the most popular boy’s name in England and Wales were shared widely among Maga figures on X and other social media sites. 

In the past week, Musk has also amplified posts on the grooming scandal by former prime minister Liz Truss, former Labour MP Kate Hoey, former Reform politician Ben Habib and people linked to broadcaster GB News. He has amplified several posts by Reform MP Rupert Lowe, who he has suggested should replace Nigel Farage as the head of the party.

But Musk has also endorsed posts from smaller accounts, including some supporters of far-right figure Tommy Robinson, which have claimed that Starmer “has no sympathy whatsoever for the English working class”, among other allegations. None of the accounts appear to be followed by Musk.

Tommy Robinson arrives for his sentencing at the Old Bailey in London in 2019
Musk has also interacted with some accounts that support far-right figure Tommy Robinson © David Mirzoeff/PA

X allows users to switch between a feed of the accounts they follow only, and an algorithmic feed, dubbed “For You”, showing content that might match their interests and previous activity. The more Musk engages with content about the UK from the far right or niche sources, the more he will be served similar content in his “For You” page, according to experts. 

“Musk has seemingly become the first tech leader to fall down the rabbit hole of radicalisation by his own product,” said Bruce Daisley, former head of Twitter’s operations in Europe, the Middle East and Africa.

Advertisement

He said that TikTok, which also has a version of the algorithmically curated “For You” page, “is far more optimised for fun, surprise and amusement”. Meanwhile Musk “simultaneously says ‘let’s post more positive stuff’ then retweets extremists from Britain First and Tommy Robinson,” he added.

Dr Jen Golbeck, a professor at the University of Maryland, College Park, who focuses on social media and extremism, said the ease with which users can pay for X’s subscription service, and consequently be featured more prominently in its users’ feeds, has played a major role in amplifying accounts that post inaccurate information.

“On the algorithmic side, I think a really important feature is the boosting of the blue checks,” she said, referring to the X users with a subscription to X Premium, signified by a blue tick on their profiles. The change to the X verification process by Musk meant that he was more likely to see posts from people who “share his increasingly radical ideology”, Golbeck added.

On Tuesday, Musk said that he had a personal reason to be interested in the UK, posting that his British grandmother, Cora Amelia Robinson, “grew up very poor in England” and was important to him as a child.

“My Nana was one of the poor working-class girls with no one to protect her who might have been abducted in present day Britain,” Musk claimed.

Advertisement
Continue Reading

News

As winter storms strike, airlines scramble to de-ice planes and keep them flying

Published

on

As winter storms strike, airlines scramble to de-ice planes and keep them flying

A Southwest Airlines Boeing 737 is de-iced before takeoff at Salt Lake City International Airport on Feb. 22, 2023. The wings, fuselage and tail must be de-iced before it can fly whenever there’s snow, ice or frost.

Rick Bowmer/AP


hide caption

toggle caption

Advertisement

Rick Bowmer/AP

WASHINGTON — When the temperature plunges, the de-icing crews go to work.

First the big truck pulls up alongside a plane. Then the bucket operator sprays the wings, tail and fuselage with a mixture of hot fluids that melts ice so the jet can take off safely.

“It’s just one of those frustrating times of year,” said Chris Manno, a retired airline pilot who spent 35 years at American Airlines. “Everything’s being done safely. There’s no good way to do it, other than slowly.”

Advertisement

This has been a challenging week for air travelers, as a major winter storm forced airlines to cancel thousands of flights and delay thousands more. Those problems were especially acute at airports around the nation’s capital, which saw more than half a foot of snow. A second storm is forecast to bring more precipitation to major airports in Dallas and Atlanta later this week.

The winter weather leaves airlines no choice but to de-ice planes before takeoff in order to keep them in the air, because even a small amount of ice on the wings can lead to serious problems.

“Not just heavy snow but actually very thin layers of frost can also have a very negative effect on lift,” said Kathleen Bangs, a former commercial airline pilot who is now a spokesperson for FlightAware, the flight-tracking website. 

A Frontier Airlines plane approaches a deicing station before takeoff in Denver in this file photo. Two powerful winter storms are disrupting the U.S. air travel system this week.

A Frontier Airlines plane approaches a de-icing station before takeoff in Denver in this file photo. Two powerful winter storms are disrupting the U.S. air travel system this week.

Brennan Linsley/AP


hide caption

Advertisement

toggle caption

Brennan Linsley/AP

“Aircraft can be rolling down the runway,” Bangs explained. “And they will accelerate, and frequently get to liftoff speed. But when they try to take off, or they do get just a few feet off the ground, they’ll lose substantial lift, and the aircraft will no longer be able to fly.”

Advertisement

The de-icing process typically takes about 20 minutes for a smaller plane, Manno said. For larger jets, de-icing can add a delay of up to 40 minutes or more to each flight.

“It’s kind of a big logistics task,” he said. “Most airlines are doing a pretty good job of handling that. It’s just, it’s a slow process, and it has to be done right.”

If it’s not done right, the results can be catastrophic. In January 1982, an Air Florida jet crashed into the Potomac River moments after taking off from what was then called Washington National Airport, killing most of the passengers and crew on board. That accident – along with the crash of a USAir jet in New York City a decade later – led to more rigorous standards for de-icing.

Airlines now typically use two different types of chemical mixtures, depending on the situation: de-icing fluid and anti-icing fluid. De-icing fluid is heated to 140 degrees to remove frost, snow and ice from the wings and other critical surfaces, while anti-icing fluid prevents ice from forming. Glycol is the key ingredient in both fluids.

While the technology behind de-icing has improved over the years, some things about the job have not changed.

Advertisement

“You’re in the elements. It’s snowing. You can barely see sometimes,” said Thomas Stevenson, a de-icer for Southwest Airlines based in Denver, in a video the company posted on YouTube. “It definitely gets cold. But I mean, that’s something you kind of signed up for when you took the job.”

His colleague, Jamie Martinez, says it’s an “awesome responsibility” to make sure a full plane carrying more than 140 passengers and crew members is ready for takeoff.

“We really try to consider every airplane as having a family member on that airplane,” Martinez said. “And that’s what we keep in mind to make sure that we’re doing the job correctly.”

It’s not just cold-weather climates where airlines have to worry about de-icing. It’s also a concern in warmer climates like Texas, Georgia and Florida.

“It is a necessity even this far down south,” said John Murphy, the assistant director of airside operations at Hartsfield-Jackson Atlanta International Airport. He says the airport has already seen more than a dozen days this winter when planes have required de-icing – even without any significant snowfall.

Advertisement

The airport is preparing for a major winter storm later this week that’s forecast to bring snow or freezing rain to a wide stretch of the South from Dallas to Atlanta. Murphy expects de-icing will once again be necessary.

“So you could see delays of upwards of an hour. That’s normal,” he said. “The name of the game is always safety.”

Those delays can be frustrating for travelers. But Kathleen Bangs with FlightAware says U.S. airlines and airports deserve credit for their performance during this week’s storm — even though thousands of flights were canceled or delayed. 

“The truth is, they kept going. They kept operating. They did it safely,” she said. “You do the best you can. I mean, when you’ve got a foot of snow falling in some places, or ice covered runways, there’s you know, there’s a lot of places around the world that just shut down and don’t operate at all.”

Advertisement
Continue Reading
Advertisement

Trending